The All Pakistan Textile Mills Association (APTMA) has asked the Pakistan Single Window (PSW) to exempt Export Facilitation Scheme (EFS) goods declarations filed at Karachi ports by Punjab-based exporters from the Punjab Infrastructure Development Cess.

In a letter dated October 5, APTMA said EFS goods are already exempt from the cess when consignments are cleared through Lahore Dry Port or Lahore Airport.

The association referred to Section 6 of the Punjab Infrastructure Development Cess Act, 2015, which states that goods exempted by the federal government from import duties and taxes are also exempt from the cess.

APTMA also cited Rule 880(1) of the Export Facilitation Scheme, 2021, introduced through Federal Government SRO 957(I)/2021. The rule allows authorized users to obtain input goods without payment of customs duty, federal excise duty, sales tax or withholding tax, subject to the scheme’s authorization.

Under Rule 880(1)(a), input goods can be imported without duty and taxes after filing a Goods Declaration containing the relevant authorization.

APTMA argued that EFS Goods Declarations filed at Karachi ports by Punjab-based exporters should consequently receive the same exemption from the Punjab Infrastructure Development Cess.

The association has asked PSW to review its system configuration in consultation with the Punjab Revenue Authority and Federal Board of Revenue to ensure that the cess is not charged on EFS Goods Declarations filed at Karachi ports.

APTMA has also sought a formal clarification for exporters, importers and customs agents regarding the exemption.